Credit CARD Act of 2009 – what it means to you – Part 3 of 7 – Minimum payment protections
[Categories: Washington Bankruptcy Attorney]
When the prohibition against a retroactive rate increase applies (e.g. the payment is late but not more than 60 days late) the CARD Act limits how much the lender can increase your minimum payment. The lender’s options are limited. The lender may either: (1) use the existing minimum payment terms; give you five years to pay off the outstading balance at the old interest rate or (3) increase the minimum payment to no more than twice as much of a contribution to paying down the balance as the old minimum payment.
Special thanks to the National Consumer Law Center www.consumerlaw.org, "Guide to Surviving Debt" chapter 5, page 78. 2010 editions.
